SunPower’s High Valuation amid Nuclear Power Crisis $SPWRA

SunPower Corporation (Nasdaq: SPWRA)
valued higher in the immediate aftermath of the Japanese nuclear
fiasco, moving on a shift of focus in alternative energy from nuclear
energy to slightly less catastrophe-prone forms of power. Cost
associated with nuclear power plants are expected to rise with
regulations getting more stringent. In this context, SPWRA gained 23.5 %
in 2011 overall, although it is actually running under a loss of 23.5%
during the past 52- weeks. The company recorded a downtrend since
September 2008, tumbling below its 10-month and 20-month moving
averages. These downtrends have pressured the shares consistently lower,
with the latter resistance level thwarting the company’s most recent
rally attempt. Given this, it becomes apparent that the present surge is
quite remarkable.

The surge was also supported by its
announcement of a new power plant, in addition to the nuclear power
crisis indirectly adding to its valuation. The company completed a
19-megawatt photovoltaic solar power plant in Colorado’s Alamosa County,
the Greater Sandhill solar power plant. The plant is expected to supply
solar power to Xcel Energy. It is expected to serve the annual
electricity needs of nearly 5,000 homes in Colorado. The Greater
Sandhill plant uses SunPower Tracker systems to track the sun throughout
the day, providing more power, especially in summer days when utilities
are needed the most. These trackers facilitate the generation of up to
25% more power from the plant compared with conventional systems.

The company in association with Xcel Energy (NYSE: XEL)
is also pursuing other solar projects in the San Luis Valley. It is
constructing a 30-megawatt photovoltaic solar power plant at the San
Luis Valley Solar Ranch in the Alamosa County.The San Luis Valley Solar
Ranch is expected to be fully operational by the end of 2011. This is a
positive move in the midst of the nuclear crisis.

SunPower Corporation stock
is currently trading at $ 15.97. The stock is down 0.93% from its
previous close. SunPower stock touched the high of $ 16.26 and the
lowest price in today’s session is $ 15.83. The stock is currently above
its 50-day and 200-day moving average of $ 15.52 and $ 13.66, indicating
bullish sentiment.

The company stock has traded in the
range of $ 9.61and $ 19.88 during the past 52 weeks. The company’s market
cap is $ 1.57 billion.

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